Repair cycle time reduction at Naval Aviation Depots via reduced Logistics Delay Time

Abstract

This thesis is a study of an alternative acquisition program for piece parts that support readiness degrader aviation components. Components with outstanding piece parts with an acquisition lead times of greater than 45 days migrate to an awaiting parts status termed a supply condition code G. The U.S. Navy currently has more than 500 million dollars worth of components in C condition with more than 76 million dollars worth of piece parts outstanding. The current average time components at the Naval Aviation Depot North Island (NADEP-M), California spends in C condition is 190 days. The major focus of the thesis is the development of an alternative acquisition system to investigate the effect of reduced acquisition lead times on repair cycle times and component inventory levels. The alternative acquisition system would reduce the acquisition lead time on all piece parts that are directly attributable to more than 20% of the applicable C condition components from an average of 199 days to only 60 days. This proposed change would reduce Logistics Delay Time (LDT) for the steady state components an average 32.4%, the average Repair Turnaround Time (RTAT) would be reduced an average 14.5% and the inventory levels would be reduced by 53 units or 4.42 million dollars. The comparison of the costs of the priority purchase system to the benefits indicates that for every one dollar invested in priority purchasing would result in 28 dollars in savings through reduced inventory levels.